We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Sterling, Brexit, Bank of England and the FOMC:

Sterling Handcuffed Going into the Christmas Recess

Brexit continues to dominate UK asset markets and with nothing expected to happen this week, Sterling is likely to limp into the Christmas break around current levels. All this could change in an instant though if the UK government announces a more unified approach to Brexit or if the EU break the current impasse over the Irish border.

The Federal Reserve is fully expected to raise interest rates by 0.25% on Wednesday, the fourth such hike this year. Fed Chair Powell’s press conference 30 minutes later will be closely parsed for clues about further monetary policy tightening next year.

The Bank of England will leave all monetary policy settings unchanged with the central bank’s hands tied by the ongoing Brexit talks.

Retail traders remain long of GBPUSD – 69.9% - according to the IG Retail Sentiment Indicator. See what this means and how it can help you make better informed trading decisions.

Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. Forex trading involves risk. Losses can exceed deposits. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading.

FX Publications Inc (dba DailyFX) is registered with the Commodities Futures Trading Commission as a Guaranteed Introducing Broker and is a member of the National Futures Association (ID# 0517400). Registered Address: 32 Old Slip, Suite 803; New York, NY 10005. FX Publications Inc is a subsidiary of IG US Holdings, Inc (a company registered in Delaware under number 4456365)